Loganair Signs 15-Year Sustainable Aviation Fuel Deal with ClimaHtech

This article is based on an official press release from Loganair.

Loganair, the United Kingdom’s largest regional Airlines, has officially entered into a 15-year SAF offtake agreement with ClimaHtech Green Flight (CGF). According to the company’s press release, fuel deliveries under this new partnership are scheduled to commence by 2029. The agreement marks a significant step in the regional carrier’s strategy to secure a long-term fuel supply while navigating the evolving landscape of aviation emissions regulations.

The strategic partnership is designed to hedge against long-term fuel price volatility and mitigate compliance costs associated with the UK government’s SAF mandate. While the specific commercial value and volume metrics of the contract have not been publicly disclosed, the agreement insulates the airline from broader macroeconomic supply chain disruptions and high logistics costs.

A standout feature of this collaboration is CGF’s decentralized production model. Rather than relying on traditional, centralized mega-refineries, modular SAF production units will be deployed directly across Loganair’s primary operational network, which includes the Scottish Highlands, Islands, and other regional UK routes.

A Decentralized Approach to Sustainable Aviation Fuel

The partnership relies on highly innovative fuel production technology. ClimaHtech Green Flight, a wholly owned subsidiary of Belfast-based clean energy engineering company CATAGEN, will supply Loganair with fuel produced via two advanced pathways: BioSAF (Power-Biomass-to-Liquid) and eSAF (Power-to-Liquid).

According to the provided technical details, CGF utilizes patented modular reactor technology, specifically the BIOHGEN and E-FUEL GEN systems developed by CATAGEN. This electrically driven platform can operate alongside intermittent renewable power assets and utilize waste biomass feedstocks. Each modular unit is capable of producing 1 million liters of SAF per year, delivering an estimated 90% reduction in well-to-wing carbon emissions compared to conventional fossil jet fuel.

Overcoming Regional Logistics Challenges

As a regional carrier, Loganair operates numerous routes that serve as essential lifelines for remote communities rather than luxury travel destinations. Decarbonizing these short-haul flights presents unique logistical challenges. By deploying production infrastructure close to the point of consumption across Northern Ireland and Scotland, the decentralized model eliminates the need to ship fuel from a distant central hub, thereby reducing both transportation costs and associated carbon emissions.

Regulatory Pressures and Industry Context

The agreement is heavily driven by the current regulatory landscape in the United Kingdom. The UK SAF mandate officially entered into force on January 1, 2025. The mandate requires jet fuel suppliers to blend alternative aviation fuel into conventional aviation fuel at increasing concentrations. The requirement started at 2% in 2025, will rise to 10% by 2030, and is set to reach 22% by 2040. Securing a 15-year supply helps Loganair ensure compliance and avoid potential future market shortages.

ClimaHtech Green Flight, launched in September 2025 at CATAGEN’s Titanic Quarter Campus in Belfast, was created to disrupt the SAF market using off-grid renewable and low-carbon electricity sources. The company has already secured strategic partnerships and offtake agreements with other major industry players, including Ryanair and Shell Aviation Ireland Limited.

Executive Perspectives

Company leadership emphasized the importance of localizing fuel production to support regional connectivity.

“As the UK’s largest regional airline, Loganair plays a vital role in connecting communities across the UK, particularly in areas where aviation is a lifeline rather than a luxury. Decarbonising regional aviation is therefore both a responsibility and a practical challenge. This long-term agreement with ClimaHtech Green Flight is an important step in securing access to Sustainable Aviation Fuel that is produced closer to where we operate, supports UK supply chains, and reflects our commitment to lower our carbon footprint.”

“This offtake agreement with Loganair demonstrates strong airline confidence in our SAF pathways and our ambition to build a distributed, regional SAF production model.”

AirPro News analysis

We view this agreement as a critical indicator of how regional airlines are adapting to stringent environmental mandates. A major hurdle for SAF adoption globally has been the cost and carbon footprint of transporting the fuel from centralized refineries to regional airports. CGF’s decentralized model could serve as a blueprint for regional airlines worldwide, solving the logistics bottleneck that often plagues smaller carriers.

Furthermore, by utilizing local waste biomass and renewable energy, the UK aviation sector can reduce its reliance on imported fuels. This aligns with broader national energy security goals. With the UK SAF mandate now active, airlines are in a race to secure affordable SAF. Early movers like Loganair are locking in long-term Contracts to avoid the anticipated price spikes as the mandate percentages increase toward 2030.

Frequently Asked Questions (FAQ)

When will Loganair begin receiving SAF under this agreement?
Fuel Deliveries from ClimaHtech Green Flight are scheduled to commence by 2029.

How much SAF can the modular units produce?
Each modular unit from CGF is capable of producing 1 million liters of SAF per year.

What are the UK SAF mandate requirements?
The mandate requires a 2% SAF blend starting in 2025, increasing to 10% by 2030, and reaching 22% by 2040.

Sources

• Loganair Press Release